German ZEW investor economic confidence indicator likely fell marginally in October

Germany’s ZEW investor economic confidence indicator is likely to have dropped marginally in October. According to a Societe Generale research note, the indicator is expected to have fallen from 0.5 in September to 0.2 in October.  It is evident that financial markets have been greatly impacted from Brexit and euro bank worries than other surveys.

This discrepancy is likely to persist for certain period of time and as long as financial market concerns continue to be there, stated Societe Generale.

However, this should not be quite significant for economic activity in Germany, with other surveys implying resilient growth and a rebound in manufacturing. Therefore, third quarter economic growth should be quite good with domestic demand underpinning growth, added Societe Generale.